Energy Consultant Warns of Possible Over-Invoicing in Sector Debt Crisis

Energy and infrastructure finance consultant Patrick Nyarko has called for urgent scrutiny of invoices from Independent Power Producers (IPPs), suggesting over-invoicing may be contributing to Ghana’s ballooning energy sector debt.

The warning comes as the government struggles with $1.7 billion in outstanding payments to IPPs, including $400 million owed to Karpower Ghana, which has threatened to cut power by May 18 if unpaid.

Speaking to Connect FM in Takoradi, Nyarko emphasized the need for transparency: “Every Ghanaian should be concerned about how much we owe and how these IPP invoices are verified. There’s a real possibility of over-invoicing draining state resources.” While acknowledging Energy Minister John Jinapor isn’t directly responsible for invoice validation, Nyarko urged his office to review the documents and renegotiate terms with IPPs to prevent a cascading crisis.

The consultant warned that Karpower’s potential withdrawal could trigger other IPPs like Asogli to follow suit, plunging Ghana into another debilitating “dumsor” period. His comments highlight growing concerns about the energy sector’s financial management as debts continue accumulating despite years of payments.

In response, the Energy Ministry’s Head of Communication Richmond Rockson announced 450,000 barrels of light cycle oil have been secured to fuel power plants, with more supplies expected, assuring Ghanaians of no prolonged outages from fuel shortages.